Private Equity Funds, Investment Management And Development

In recent years, the private equity fund has become a new industry at current financial market of China, which attracts huge interests from investors. The private equity fund of China has enjoyed considerable progress, enriched China's capital market structure, promoted reform and restructuring of state-owned enterprises, brought a new financing channels for the SMEs and local enterprises, improved the corporate governance levels and management efficiency, and enhanced the independent innovation capability of enterprises. The private equity fund has made significant contributions to economic development, as well as brought the transformation of economy growth manner and industrial structure adjustment.On the other hand, the China's private equity market is still in the early stages of development, and there are many institutional and policy issues to resolve, such as relatively simple investment strategy and style, not smooth exit mechanism, yet open to the financial mixed operation, imperfect policies and regulations, lack of core value-added service capabilities, which have become obstacles to the development of private equity funds. To develop private equity funds, build suitable for China's private equity fund industry, and promote private equity investment in China to a higher level, have important practical significance for the transformation of economic growth in China, adjustment of industrial structure, optimization the allocation of resources, promotion healthy development of enterprises, creation of innovative oriented country, and promotion the healthy development of the national economy. It is a major issue to promote the development of China's capital market and further improve the investment and financing system reform.The purpose of this thesis is to enhance the industry practitioners and policy makers understanding of private equity funds through a comprehensive analysis of the PE's management process, in an attempt to provide some recommendations for China's private equity fund industry. This paper describes the main features of private equity funds, the major differences between the other asset management industry and the reasons for the PE's rapid development in China, theoretically and empirically. Then this paper explore the trends of China's private equity fund industry based on transition economics, actively explore the development of private equity fund industry in the optimal path, build consistent policy and legal environment for China's national conditions and regulatory systems, and promote private equity fund industry's healthy development.In this paper, we use the research method of the combination of theory and practice, empirical analysis and normative analysis, and use PE investment's whole process, transformation and regulation of China's private equity fund industry as the starting point for analysis to China's development model of private equity funds as the theme. This paper can be divided into five sections:Chapter 1 is an introduction to the topics of the background, purpose, significance of the study; Chapter 2 is an overview of private equity funds, main on the concept, characteristics, differences between the other asset management industry, the development of domestic and foreign private equity funds, the importance of national economic development, and the problems and shortcomings of China's current private equity fund industry; Chapter 3 is the analysis of the private equity fund investment management process, focusing on analysis of PE's value discovery, PE's value transaction, PE's value holding and PE's value realization, providing a theoretical framework of the understanding of PE; Chapter 4 is the empirical analysis, making statistics and analysis of PE's investment point in time, price-earnings ratio and return on investment based on the sample data, showing China's current private equity fund investment performance and the main features of the practice; Chapter 5 is the future development prospects and policy recommendations analysis of China's private equity fund, predicting the future of private equity fund industry trends, and proposing a series of institutional arrangements and policy recommendations for the healthy development of China's private equity fund industry.Through the above analysis and discussion of five parts, this paper argues that private equity fund has important practical significance on improving our capital markets, improving the financing environment, building an innovative country, and promoting the reform and restructuring of state-owned enterprises. Government's financial sectors can improve preferential tax policies for private equity funds, full play the guiding role of financial capital, and strengthen policy support for high-tech enterprises to promote the healthy development of private equity funds. China's private equity fund industry should firmly take the road of market-oriented and make healthy development with China's rapid economic development and restructuring, under government's strong support as well as reasonable and effective regulation.